Theme 1.1 Flashcards Preview

Edexcel Business Studies 9-1 > Theme 1.1 > Flashcards

Flashcards in Theme 1.1 Deck (9)
Loading flashcards...

What is business enterprise?

Business enterprise is the process of identifying new business opportunities and then taking advantage of them.


Give three purposes of business activity

Provide people with a good or service, Meet customer needs and Add value


Name the ways in which a business can add value to a product

Make a product convenient, Having a good brand image for a product, Improve the design or quality, Have a USP for the product.


Why do new business ideas come about?

Changes in technology, Change in consumer needs, Products becoming obsolete.


What are the two types of business ideas?

Business ideas can be original or an adaptation of an existing product.


What is an entrepreneur?

An entrepreneur is someone who takes on the risks of enterprise activity.


What must an entrepreneur be able to do to run a successful business?

Organise resources (cash flow, resource, organisation), Take risks(Leave current job, Lack of security, Potential failure), Make business decisions(using intuition).


What are the risks of running a business?

Lack of security (no steady income, could end up unemployed, leave a former job).

Failure (Time, money and effort wasted).

Financial Loss


What are the rewards of running a business?

Success, Making a profit, Independence & Choice